Shares of Trent Limited, the Tata Group’s retail arm, fell nearly 12% on Tuesday due to lower-than-expected revenue growth in the June quarter. The stock saw a decline of 11.93% to Rs 2,944.60 on the NSE during the session. Trent reported a 19% year-on-year increase in standalone revenue from operations, reaching Rs 5,666 crore for the June quarter.
Investors were let down as the revenue expansion fell short of market expectations, which were in the low-to-mid 20% range. This disappointment led to a significant drop in the company’s share price. Despite the growth, concerns linger over factors like declining store productivity and increasing competition in the value fashion segment.
During the quarter, Trent expanded its store network to 1,312 stores, including Westside outlets, Zudio stores, and other lifestyle concepts. Brokerage Citi noted that Trent’s revenue growth of 19% was below its estimate of 23%. The company is also undergoing a leadership transition, as announced during its recent annual general meeting by Chairman Noel Tata.
